Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Hudson Technologies (HDSN)
Consensus Price Target: $9.63 (31% implied return)
Founded in 1991, Hudson Technologies (NASDAQ: HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.
Why Are We Hesitant About HDSN?
- Sales tumbled by 9.9% annually over the last two years, showing market trends are working against its favor during this cycle
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Waning returns on capital imply its previous profit engines are losing steam
Hudson Technologies’s stock price of $7.35 implies a valuation ratio of 8.3x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than HDSN.
Corcept (CORT)
Consensus Price Target: $91 (151% implied return)
Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ: CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases.
Why Do We Steer Clear of CORT?
- Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 24.7 percentage points
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 6.5% annually while its revenue grew
- Free cash flow margin dropped by 21.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up
At $36.25 per share, Corcept trades at 50.5x forward P/E. To fully understand why you should be careful with CORT, check out our full research report (it’s free).
One Stock to Buy:
Dutch Bros (BROS)
Consensus Price Target: $76.84 (25.3% implied return)
Started in 1992 by two brothers as a single pushcart, Dutch Bros (NYSE: BROS) is a dynamic coffee chain that’s captured the hearts of coffee enthusiasts across the United States.
Why Will BROS Beat the Market?
- Offensive push to build new restaurants and attack its untapped market opportunities is backed by its same-store sales growth
- Same-store sales growth averaged 5.7% over the past two years, showing it’s bringing new and repeat diners into its restaurants
- Free cash flow margin increased by 5.1 percentage points over the last year, giving the company more capital to invest or return to shareholders
Dutch Bros is trading at $61.34 per share, or 73.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
